Danish Crown backs investment in new pig housing

After several years of falling production of pigs for slaughter in Denmark, Danish Crown now plans to help its owners invest in new buildings and in converting sow stalls.

The purpose of the initiative is to guarantee supplies for the company’s Danish operations – and thereby safeguard jobs in Denmark.

Producing pigs for slaughter is tougher for farmers in Denmark than for their colleagues in neighbouring countries because of the significantly stricter political demands imposed on production in Denmark. The result has been a decline in the production of pigs for slaughter in recent years, with farmers showing very little interest in investing in new housing units or in renovating old facilities.

The decline in the production of pigs for slaughter in Denmark means a loss of jobs and less income for the cooperative members and for Danish society in general. The Board of Directors of Danish Crown has therefore decided to encourage the production of pigs for slaughter by offering subsidies for the building of new pig housing units and the conversion of old sow stalls.

“We find that politicians are becoming more aware of the fact that the production of pigs for slaughter makes a significant contribution to the Danish economy. And if we, as a company, can help to optimise this situation – and correct a buckling trend – then it obviously makes sense to do so,” says Chairman of Danish Crown, Erik Bredholt.

Danish Crown has set a goal of increasing total production by 10,000 pigs a week or 520,000 more pigs for slaughter a year.

“At the end of the day, it is obviously the politicians who decide whether Denmark should accommodate more pig production, and whether the framework conditions for making it possible should be introduced. But this is a signal to the cooperative members that, as co-owners of Danish Crown, they can expect a bit more,” says Erik Bredholt.

FactsUnder the plan, financial support is offered for two types of initiatives: for brand new buildings and for converting sow stalls.

New buildings

The subsidy is given for the construction of new housing units for pigs for slaughter.

The subsidy will be paid for max. 8,000 produced pigs for slaughter per facility and per cooperative member.

The subsidy will be disbursed as DKK 0.15/kg for a period of 5 years.

The subsidy programme for new buildings can cover production facilities corresponding to max. 260,000 produced pigs for slaughter a year.

The subsidies will be granted to the cooperative members on a first-come, first-served basis.

Conversion subsidyThe subsidy for conversion will be given to producers who discontinue their piglet production following the introduction of new legislation governing the lairage of pregnant sows in 2013. In other words, the subsidy must be used for converting piglet production units into production units for pigs for slaughter. It is a precondition that a minimum of DKK 500 is invested per pen place.

The subsidy will be paid for max. 8,000 produced pigs for slaughter per converted production facility and per cooperative owner.

The subsidy programme for converting buildings can cover production facilities corresponding to max. 260,000 produced pigs for slaughter a year.

The subsidy will be disbursed as DKK 0.075/kg for a period of 5 years.

The subsidies will be granted to the cooperative members on a first-come, first-served basis.